Hobbs City Commission approves contracts, budget adjustment and event grants

The Hobbs City Commission voted unanimously Jan. 28 to approve a set of contracts and a budget adjustment that city staff said will fund roadwork, building repairs and small-event grants.

City staff told the commission the session would authorize roofing and HVAC work at municipal buildings, a mill-and-overlay road contract on West County Road (New Mexico 208), design services for a downtown plaza renovation, a CDBG change order for neighborhood infrastructure and a near-$1.1 million construction change order for continued Midwest Street reconstruction. The commission also adopted a budget adjustment and approved lodgers-tax awards for local events.

City Manager Manny Gomez and Assistant Finance staff said the budget adjustment (adopted as Resolution 75-80) increases revenue by $46,820 and increases expenditures by about $1.8 million; staff said the change reduces the city’s general-fund reserve from about 59% to about 58% and that the city’s ending cash balance would be approximately $101,000,000. Assistant Finance staff identified uses including the previously approved PTO payout and salary adjustments.

Staff described the roofing/HVAC project for Municipal Court and the Police Department Annex as a TPO roof selection and presented G and G Roofing as the low bidder under an existing CES contract; the amount listed in the agenda was $22,128,051.32. The commission approved that contract by roll call.

The commission awarded Constructors Inc. a $2,831,739.66 contract for mill-and-overlay work on three-and-a-half miles of New Mexico 208 from south of the railroad tracks near New Mexico 18 to Carlsbad Highway; staff said a $2 million legislative grant and roughly $850,000 from the budget adjustment will fund the work, which includes striping.

The commission approved a CES professional-services contract with Plan Collaborative for schematic-to-construction design of the Ship (Township) Street/Broadway plaza expansion in downtown Hobbs. Staff said the design contract is just under $125,000 and that the project budget is $1 million; staff also noted some infrastructure items such as overhead electrical relocation and drainage were not included in the schematic design and will require additional discussion if pursued.

A change order (Change Order No. 4) for CDBG-funded infrastructure work with Ramirez and Sons Inc. for approximately $1,109,977.80 was approved; staff said this phase will reconstruct about 8.5 additional blocks on Midwest Street. Ramirez and Sons retained their original bid pricing, staff said, and the company’s price was roughly $1 million lower than the next bidder for that phase.

City staff said the lodgers-tax review board recommended funding for six entities and that staff recommended $119,783 in total awards from two lodging-tax funds and related buckets; staff outlined specific awards to events including a $25,000 recommendation to Cyclocity Promotions and a $48,800 recommendation for the Permian Basin U Bridal association events.

Votes at a glance

- Resolution 75-79 (lodgers-tax allocations): approved by roll call (7-0); staff recommended $119,783 in awards. - Resolution 75-80 (budgetary adjustment no. 2): approved by roll call (7-0); staff reported +$46,820 revenue, +$1,800,000 expenses; reserve from ~59% to ~58%. - G and G Roofing contract (Municipal Court / PD Annex roofing & HVAC): approved by roll call (7-0); amount listed in agenda $22,128,051.32. - Constructors Inc. contract (mill & overlay – New Mexico 208): approved by roll call (7-0); $2,831,739.66; includes striping and uses $2,000,000 legislative grant. - Plan Collaborative CES professional-services agreement (Ship Street/Township Street plaza design): approved by roll call (7-0); design contract ~ $125,000; overall project budget ~$1,000,000 (per staff). - Ramirez & Sons Change Order No. 4 (CDBG infrastructure – Midwest St. continuation): approved by roll call (7-0); $1,109,977.80. - Other consent items and minutes: approved by roll call (7-0).

Staff presenters included City Manager Manny Gomez, Assistant Finance staff (identified in meeting as Deb/Corral), Public Works and engineering staff and the city’s procurement/contracting staff. Commissioners asked about project extents, life-span for roof materials and whether schematic designs included infrastructure work before voting.

The commission’s actions authorize staff to proceed with contract execution and project implementation. Staff said some projects use legislative grant funds or prior budgeted dollars and that detailed construction schedules will be provided to the commission when available.